(The original article in Japanese was posted onJanuary 22, 2021)

On January 18, West Japan Railway Company (JR-West) announced their plan to commercialize freight transport systems using Shinkansen (bullet trains running between major cities in Japan). JR-West will be in a business tie-up with East Japan Railway Company (JR-East) to transport fresh fishes and some other products from Kanazawa, Ishikawa Prefecture to metropolitan areas. JR-West will also work with Kyushu Railway Company (JR-Kyushu) and start a demonstration experiment between Kagoshima Station and Shin-Osaka Station.

The freight transport using Shinkansen has done before as temporary services for food and product fairs. However, the experiment conducted this time has a different strategic purpose from the past temporary service since the one this time will be carried out based on the belief that the high-speed freight transport is a growing field of business.

The demonstration experiment of the consolidated transport systems with passengers and freight was first made by Hokkaido Railway Company (JR-Hokkaido). They went into partnership with Sagawa Express Co., Ltd. and started the experiment on Soya Main Line, a conventional line in April 2019, and the experiment on Hokkaido Shinkansen between Shin-Hakodate-Hokuto Station and Shin-Aomori Station in this January. JR-Kyushu also started to work with Sagawa Express on August 26, 2020 to develop a market for express freight delivery utilizing Kyushu Shinkansen between Hakata Station and Kagoshima-Chuo Station. While both railway companies’ experiments run only within each of their operating routes for now, JR-East’s plan of commercialization is the first step toward development of inter-company high-speed logistics network.

The aviation industry struggling against a poor financial performance also changed direction of their business to the strengthening of the freight transport. Taking Japan Airlines Co., Ltd. (JAL) as an example, the revenue from the total Air Transportation Segment of the company in the period from April to September 2020 showed a substantial decrease by 74.0% over the same period of the previous year, while the cargo and mail revenue increased by 18.4% year on year. Suspension in the services of passenger flights and reduction in the number thereof due to the coronavirus crisis resulted in reduction of the capacity of the cargo space on aircrafts. Resultantly, airfreight rates remain high. However, the revenue is still not enough at all to make up the loss from air passenger transportation caused by the COVID-19 pandemic. Airline companies have been reinforcing their airfreight services to carry on their business by some means including diversion of passenger aircrafts to cargo flights.

Even under the current circumstances where people’s travels are greatly restricted, volume of transportation of goods still continues to expand. This expansion will be boosted by the societal digitalization and higher penetration of remote activities including “remote” working, “remote” meeting, “remote” shopping experience or the like, which will result in higher demand of frequent and small-lot delivery of goods than before. If people’s lifestyles change and this kind of situation mentioned above becomes a norm, the speediness and on-time performance that are strengths of the high-speed public transportation should be able to absorb the costs. Realization of MaaS (Mobility as a Service) that integrates high-speed transportation network such as airlines and Shinkansen, conventional railway lines, truck network, last mile logistics and driverless automated operation of vehicles could be a platform that develops local businesses and enhance the potential of regional communities. Especially, railway companies’ full-scale market entry will encourage a “station” to be a transport (or mobility) hub, and then, the station will be restored to its former glory as the “heart of the town.” The “Restoration of the station as the heart of the town” leads to attraction on people to the town itself. Public and private organizations are desired to cooperate together to make this happen.

This Week’s Focus, January 22

Takashi Mizukoshi, the President